EUR/JPY Price Forecast: Positive view prevails near 172.00, investors await Eurozone HICP release
- EUR/JPY trades on a negative note around 172.00 in Friday’s early European session.
- The positive view of the cross prevails above the key 100-day EMA with the bullish RSI indicator.
- The immediate resistance level emerges at 173.45; the first support level to watch is 170.70.
The EUR/JPY cross trades with mild losses near 172.00 during the early European session on Friday. The Euro (EUR) softens against the Japanese Yen (JPY) amid the tariff uncertainty surrounding the US-EU trade deal.
However, the dovish tone of the Bank of Japan (BoJ) and domestic political uncertainty in Japan might weigh on the JPY and cap the downside for the cross. The preliminary reading of the Harmonized Index of Consumer Prices (HICP) from the Eurozone will be in the spotlight later on Friday.
Technically, the constructive outlook of EUR/JPY remains in place as the cross is well-supported above the key 100-day Exponential Moving Average (EMA) on the daily chart. The upward momentum is reinforced by the Relative Strength Index (RSI), which stands above the midline near 56.15, displaying bullish momentum in the near term.
On the bright side, the first upside barrier emerges at 173.45, the upper boundary of the Bollinger Band. Sustained trading above this level could pick up more momentum and aim for the 173.90-174.00 zone, representing the high of July 28 and the psychological level. Further north, the next resistance level is seen at 175.17, the high of July 10.
In the bearish case, the lower limit of the Bollinger Band of 170.70 acts as an initial support level for EUR/JPY. A breach of this level could drag the cross toward 169.72, the low of July 31. The additional downside filter to watch is 168.00, representing the round figure and the low of June 23.
EUR/JPY daily chart
